June 23, 2008

AFTER KHAZANAH, ZETI TO QUIT BANK NEGARA?

Tan Sri Dr. Zeti Akhtar Aziz has quit as a member of the Khazanah Nasional Bhd board, citing possible conflict of interest since KN has major stakes in banks.

Now from 8 board members, KN has only seven. Zeti was appointed as a director of Khazanah in July 2000 after she became the Bank Negara governor in May. It is normal procedure for BNM to have a seat in Khazanah (which leads to speculation now: Is Zeti quitting Bank Negara, too?)

Khazanah Nasional was incorporated on 3 September, 1993 as a public limited company, at the time when the late Jaffar Hussein was governor, and Nor Mohamed Yakcop was his chief adviser for foreign exchange.

Nor is current board member of KN and MOF2.

Nor and Zeti are known not to see eye to eye on policy issues.

Interestingly, even before the dust settles down, there was talk about the Malaysia Building Society Bhd (MBSB) being taken private!

Malaysia Building Society Bhd (MBSB) is expected to be taken private next month for shareholders to transform the company into a niche player in the financial market.

Investors from Abu Dhabi, together with the Employees Provident Fund (EPF), are expected to make a general offer of between two and three times the book value of the company that would lead to the Middle Eastern investors taking a 30% stake in the company.

So what if MBSB is taken private?

Well ...

MBSB is 'an Exempt Finance Company'

The status of an Exempt Finance Company was granted to MBSB on 1 March 1972 by the Ministry of Finance and the status has never been revoked or rescinded.

The status allows MBSB to carry on a finance business without a license. It can set up headquaters without the go-ahead from the Bank Negara even. If it falls out of Government hands, you can just imagine what it's capable of doing.

NOW that's what I call a NATIONAL ASSET being given to a foreigner!!!!